Light, sweet crude oil prices for November delivery gained more than $1/bbl to close at $49.43/bbl on the New York market Oct. 8 after having briefly touched a trading session high of $50.07/bbl. Meanwhile, the Brent crude oil contract for November delivery closed above $53/bbl.
Analysts attributed the crude price support to a weakening dollar and concerns that Russia’s military involvement in Syria could increase geopolitical tensions and the risk of a crude oil supply disruption from the Middle East over the long term.
“Part of this week’s rally has been due to some additional geopolitical premium being priced in,” said Olivier Jacob at Petromatrix. “Crude oil futures are having their best week since the last week of August.”
The Federal Reserve on Oct. 8 released its September policy meeting minutes, which showed that Fed officials held off on raising interest rates because of concerns about low inflation.
The natural gas contract for November gained 2.4¢ to a rounded $2.50/MMbtu. The Henry Hub, La., gas price dropped 2¢ to $2.44/MMbtu.
Heating oil for November delivery was up 2¢ to rounded $1.60/gal. The price for reformulated gasoline stock for oxygenates blending for November was up a rounded 1.8¢ to a rounded $1.41/gal.
The November ICE contract for Brent crude increased $1.72 to $53.05/bbl, and the December contract gained $1.61 to settle at $53.38/bbl. ICE gas oil for November settled at $486.25/tonne, down $2.50.
The average price for the OPEC basket of 12 benchmark crudes was $48.10/bbl on Oct. 8, down 14¢.
Contact Paula Dittrick at email@example.com
*Paula Dittrick is editor of OGJ’s Unconventional Oil & Gas Report.